Mubadala invested in Russian aluminum // Fund will buy part of Polina Yumasheva’s stake in En +

The Mubadala investment fund bought out part of the stake of Oleg Deripaska’s ex-wife Polina Yumasheva in En + for about $ 200 million. This is the first major deal with the company’s shares since the lifting of US sanctions in 2019. Mubadala has already invested in solar-powered aluminum production in the UAE. Shortly before the deal, En + announced a new strategy to move higher carbon footprint assets into a separate entity.

The ex-wife of Oleg Deripaska, Polina Yumasheva, sold 2.6% of the energy company En + to the Emirati investment fund Mubadala Investment, En + reported on June 23. As a result, the share of Mrs. Yumasheva dropped to 2.58%. The company’s free float will grow to 12.3%. En + chairman of the board of directors Gregory Barker said that the US regulator OFAC had been notified of the sale of the stake. Based on the current capitalization of En +, a 2.6% stake could be worth about $ 200 million. Polina’s father Valentin Yumashev, who was also looking for a buyer for his stake, did not sell the shares.

In 2018, En +, like other assets of Oleg Deripaska, came under US sanctions. In January 2019, OFAC removed En + from the sanctions list, but with a number of conditions, including the loss of Oleg Deripaska’s control over the company. As of the end of the year, the company’s free float was 9.73, the former relatives of Oleg Deripaska controlled 6.75%, the fund founded by Mr. Deripaska – 3.22%, Glencore – 10.55%. 21.37% are registered with En + Group, while the voting rights in respect of the 14.33% stake are assigned to an independent trust, voting on the remaining 7.04% is carried out by the decision of the board of directors Gregory Barker. Oleg Deripaska’s share is cumulatively 44.95%, but voting rights are limited to 35%.

En + includes the energy and metallurgical business. The first includes four hydropower plants with an installed capacity of 15.1 GW, 16 thermal power plants with 4.4 GW and a solar power plant with 5.2 MW. En + also owns a 56.88% controlling stake in Rusal, the largest aluminum producer outside of China. In 2020, En + reduced its net profit by 12.5% ​​to $ 1 billion, revenues – by 11.9% to $ 10.35 billion. This year, the results should improve significantly due to the rise in aluminum prices.

How En + Group bought back its shares from VTB

This is not Mubadala’s first investment in the Russian economy. In May, he became the owner of a large 6.3% stake in the developer Etalon Group, the largest shareholder of which is AFK Sistema, Vladimir Yevtushenkov. Mubadala also has a joint fund with RDIF. At the same time, Mubadala itself already has investments in the Emirates aluminum producer Emirates Global Aluminum, which produces it using solar energy, and this year began supplying the metal to BMW.

According to Faris Sohail al-Mazrui, investment director of the fund in Russia and the CIS, as quoted in Mubadala’s report, “the purchase of En +, which combines assets in clean energy and aluminum production, is a welcome addition to the fund’s portfolio in Russia.”

Mubadala’s investment is taking place against the backdrop of a massive transformation of the company announced by Rusal. The company will spin off a number of high-carbon assets into a separate structure and will be renamed AL +. Export-oriented assets will remain in AL +, which will reduce the company’s costs after the introduction of a carbon tax in the EU. In addition, the aluminum company is planning environmental upgrades at four of its plants.

Dmitry Orekhov, Managing Director of the NKR rating agency, believes that Mubadala may increase its stake in En + in the future, “especially if the Arab fund sees the prospects for growth in the company’s capitalization.” Since the beginning of the year, En + shares on the Moscow Exchange have grown by 15.6%, to 890 rubles. for the paper.

Evgeny Zainullin

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